Repo transactions require borrowers to sell securities (loan collateral) to lenders for cash today, with the understanding that the transaction is reversed on a specified end date. Repo transactions are often conducted on an overnight basis. “Term repo” transactions are held for a specific term, e.g., 1-week, 2-weeks, 1 month, etc. Borrowers are said to enter a repo transaction or “repoed out” the securities; lenders conduct “reverse repo” transactions. Repo trades are often collateralized by U.S. Treasury securities but may be secured by other mutually agreed collateral. Usually the collateral is wired vs. cash to the lender but is sometimes held per a 3rd party custody arrangement. At least $5 trillion (USD) is repoed annually in the U.S. with perhaps another 6.4 trillion (EUR) in Europe. Repo transactions are bilateral transactions between two parties which requires an assumption of credit risk by one party with respect to the other. The reliance on the acceptance of counterparty credit risks makes repo transactions vulnerable when credit is scarce. Under such economic conditions, mechanisms which mitigate risk and provide security may be needed to facilitate and encourage lending transactions.